Japan keeps interest rates at 0.3%

Japan keeps interest rates at 0.3%

The Bank of Japan’s Monetary Policy Meeting last Friday has yielded a unanimous vote to retain its present interest rate at 0.3%.

The central bank has stated that economic activity remains stilted due to the continuing effects of energy and materials rising in price earlier in the year coupled with a decline in export activity.

CPI (minus fresh food) is at 2.5%, and is likely to be moderated by less volatile food prices and the falling cost of petrol and related products.

The Japanese economy is forecast to return to the path of sustainable growth in the long-term, but the Bank of Japan has stated that the immediate economic future is more difficult to predict and more comfortable economic conditions may take some time to arrive.

The central bank has pledged to continue careful monitoring of the global situation, with a view to utilising monetary policy effectively to ensure Japanese economic stability. more